FxWirePro
Short

RSI & stochastic oscillators lead EUR/USD extended dips to 1.05

FX:EURUSD   Euro Fx/U.S. Dollar
890 9 4
Euro             has been collapsing from the peaks of May 2014 (almost more than 78.6% Fibonacci levels).

Although some stability was seen from April’15 but still there is no strength in recovery to reach at least 23.6% price gains despite all attempts by euro             area leaders if you’ve to speak fundamental perspectives.

The pair has slipped below strong support zone at 1.0730 but it tested support at 1.0616 (lower trendline ) to push the prices back to 1.07 regions.

RSI (14) is in convergence with dropping prices which is again a weak signal (Currently, RSI trending at 29.9950). This indicator has touched oversold territory but no trace of bulls alert.

This leading oscillator has started evaluating when the prices touched 1.0885 by taking the computation of last 14 weeks periods the magnitude of recent gains to recent losses in an attempt to signify the too much overbought signals from then.

While %D crossover has been maintained on slow stochastic curve even below 20 levels which means selling pressure is justifiable (Currently, %D line at 17.8295, while %K line at 9.5550).

Stochastic curve also enters into the oversold territory but proper trace of %K crossover that signifies weakness in the euro             .

Hence, we still project 1.0525 for end - 2015, a cyclical low of 1.05 in Q1 2016 can also not be disregarded, and a slow uptick from there to 1.11 by June 2016 and 1.13 by Q3 2016.

Fundamentally, the USD index has recouped post payroll claims and optimistic hints from Yellen.

Though speaking about the dollar these days somewhat misses the point: idiosyncratic factors have driven cross-market correlations to such low levels that stability in the aggregate conveys little about the underlying frenzy across pairs.
You think there will be a reversal?
Reply
FxWirePro PRO zagrik1984
Perhaps.. there could be abrupt bounces, but 1.1175 as supply and 1.05 as demand zone. Any breaches on either side would determine next intermediate trend. Until next month or so we are bearish indeed.
Reply
Maybe just not a big correction?
Reply
FxWirePro PRO zagrik1984
1.1175 pivot point on north & 1.05 on south with more downside potential, any rallies should be deemed as an opportunity to short.
Reply
You changing color every min bro, Today you update twice for long and now you say short, again you prove to be wrong .
+2 Reply
This is just long term view on EUR/USD . Not for trading
+1 Reply
In any asset class, everyday we can neither afford to expect spike up nor dip down. Swing trade defines to utilize both bullish and bearish trend. Moreover, FX fluctuates every fraction of seconds but we dont deviate. This is just an attempt to spot out short term swings and long term trend prediction. To be precise, the pair would likely drag further southwards.

Cheers.. Happy learning..
+1 Reply
in my opinion u dont comment rsi correct bro.measure the difference of rsi in deep and now.it seems a mismatch tht is a few signal to reversal actions.
+1 Reply
FxWirePro PRO halil10akca
Technicals can never be studied in an isolation, no doubt RSI alone began showing reversal when pair touched 1.0461 (see green color circled area) but could you please help me understand any sort of corresponding substantiation?

Well.. that's the reason why we cannot afford to jump into a conclusion stating it is a reversal (lets observe atleast couple of candles occurred previously that are moving in linear direction, as a result again a divergence from the same RSI to these linear price moves (wouldn't you consider this stance as divergence..?) We would appreciate your opinion on this.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
France
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out